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What is Nifty 50 ? Definition, Trading Strategies & Returns.

The NIFTY 50 or simply NIFTY as it is popularly known is India’s most tracked Index from the house of India’s leading stock exchange the NSE – National Stock Exchange. The value of the NIFTY is a single numerical representation for 50 of its Index constituents. The NIFTY 50 index number is India’s benchmark index and is reference of the current state of the markets. It measures and tracks the stock movement of 50 index constituents known as the Nifty Index stocks. These NIFTY 50 are highly liquid and come from different sectors of the Indian economy and collectively form the NIFTY. Simply said, the NIFTY 50 is the synonymous with the NSE itself.

How can one track the NIFTY live or figure the real time value of the NSE NIFTY today?

Nifty being the composite of 50 large cap stocks offers the most sophisticated instrument for profitable trading. Because no individual stock has substantial influence on the price moment, trading Nifty purely on technical analysis offers huge possibilities to profit using appropriate tools for analysis.

Strategies that have stood the test of time for intraday trading is the moving average cross over system. No other indicator is required if the cross over system is followed with rigorous discipline. On a 5 Mins chart using 55 and 21 bars simple moving average cross over system is a very profitable nifty trading system for intraday trading. Huge profits can be made provided the trader has the discipline to take all trades which the system generates.

NIFTY Positional Trading Strategies

Nifty being the composite of 50 large cap stocks offers the most sophisticated instrument for profitable trading. This is the only instrument which has minimal overnight risks compared to other individual stocks and hence can be traded on positional basis for better risk adjusted returns.

For positional trading on daily basis, crossover of 21 Day and 34 Days EMA is very a profitable trading system in Nifty. Whenever the 21 Day EMA crosses the 34 Day EMA from below a buy signal is generated and vice versa for sell. Rigorously following this NIFTY Trading system generates huge profits on a sustained basis.

NIFTY Intraday trading strategies and Positional trading strategies discussed above are solely for educational and informational purposes. Reference to trading in the NIFTY is with respect to NIFTY Futures. This is not a solicitation to trade and also should not be construed as trading/investment advice.

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